{"id":25121,"date":"2016-09-07T10:35:56","date_gmt":"2016-09-07T10:35:56","guid":{"rendered":"https:\/\/www.markhamlawfirm.com\/mystaging\/dev\/?p=25121"},"modified":"2025-01-05T23:47:37","modified_gmt":"2025-01-06T07:47:37","slug":"group-boycotts-explained-william-markham-san-diego-attorney-2016","status":"publish","type":"post","link":"https:\/\/www.markhamlawfirm.com\/mystaging\/group-boycotts-explained-william-markham-san-diego-attorney-2016\/","title":{"rendered":"Group Boycotts, Explained (By William Markham, San Diego Attorney, \u00a9 2016)"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; transform_scale_linked=&#8221;off&#8221; transform_translate_linked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.22.2&#8243; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.27.4&#8243; text_font=&#8221;||||||||&#8221; header_5_font=&#8221;Times New Roman|700||on|||||&#8221; header_5_text_align=&#8221;left&#8221; header_5_font_size=&#8221;20px&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>Here is a succinct statement of the modern doctrine on group boycotts, which is a term of art in antitrust jurisprudence. A \u201cgroup boycott\u201d is a business practice by which two or more companies (the \u201cboycotting companies\u201d) agree not to do business with one or more companies (the \u201ctargeted companies\u201d). Under certain circumstances, a group boycott constitutes an antitrust offense and is condemned under a modified <em>per se<\/em> rule as a violation of Section 1 of the Sherman Act and California\u2019s Cartwright Act.<\/p>\n<p>Specifically, a group boycott is <em>per se<\/em> unlawful when the following circumstances are in place:<\/p>\n<ol>\n<li>The boycotting companies control a resource, such as a facility, a supply or access to a market, that each targeted company requires in order to become or remain a viable competitor in a given line of commerce or market, and one of the boycotting companies, or all of them collectively, hold a \u201cdominant\u201d position in the line of commerce or market from which they seek to exclude each targeted company.<\/li>\n<li>The boycotting companies act in concert to withhold the necessary resource from each targeted company, which in consequence cannot become or remain viable competitor.<\/li>\n<li>The boycotting companies lack a necessary business justification for withholding the necessary resource from each targeted company.<\/li>\n<li>The boycott is \u201chorizontal\u201d \u2014 i.e., is undertaken in accordance with an express or tacit understanding reached by two or more direct competitors.<\/li>\n<\/ol>\n<p><strong>Legal Authority<\/strong>:\u00a0<span style=\"text-decoration: underline;\">See<\/span> <em>Hahn v. Oregon Physicians\u2019 Service<\/em>, 860 F.2d 1501, 1509 (9th Cir. 1988) (setting forth the first three of the above four criteria); and <em>NYNEX Corp. v. Discon, Inc<\/em>., 525 U.S. 128, 135, 119 S.Ct. 493, 498 (1998) (indicating that the <em>per se<\/em> rule against group boycotts applies only when it entails a horizontal arrangement made by direct competitors). <span style=\"text-decoration: underline;\">See also<\/span> <em>Klor\u2019s, Inc. v. Broadway-Hale Stores, Inc.<\/em>, 359 U.S. 207, 212-14, 79 S.Ct. 705, 709-10 (1959) (the Supreme Court stated the <em>per se<\/em> principle); and <em>Northwest Wholesale Stationers, Inc. v. Pacific Stationery and Printing Co.<\/em>, 472 U.S. 284, 294, 105 S.Ct. 2613, 2619-20 (1985) (a group boycott is unlawful <em>per se<\/em> when it has \u201cinvolved joint efforts by a firm or firms to disadvantage competitors by either directly denying or persuading or coercing suppliers or customers to deny relationships the competitors need in the competitive struggle.\u201d) (<span style=\"text-decoration: underline;\">quoting<\/span> L. Sullivan, Law of Antitrust at 261-62 (1977)).<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here is a succinct statement of the modern doctrine on group boycotts, which is a term of art in antitrust jurisprudence. A \u201cgroup boycott\u201d is a business practice by which two or more companies (the \u201cboycotting companies\u201d) agree not to do business with one or more companies (the \u201ctargeted companies\u201d). Under certain circumstances, a group [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":27604,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<div id=\"content-left\"><div class=\"maincontent\"><p><!-- begin of blog post --><\/p><div class=\"blog-posted\"><p>Here is a succinct statement of the modern doctrine on group boycotts, which is a term of art in antitrust jurisprudence. A \u201cgroup boycott\u201d is a business practice by which two or more companies (the \u201cboycotting companies\u201d) agree not to do business with one or more companies (the \u201ctargeted companies\u201d). Under certain circumstances, a group boycott constitutes an antitrust offense and is condemned under a modified <em>per se<\/em> rule as a violation of Section 1 of the Sherman Act and California\u2019s Cartwright Act.<\/p><p>Specifically, a group boycott is <em>per se<\/em> unlawful when the following circumstances are in place:<\/p><ol><li>The boycotting companies control a resource, such as a facility, a supply or access to a market, that each targeted company requires in order to become or remain a viable competitor in a given line of commerce or market, and one of the boycotting companies, or all of them collectively, hold a \u201cdominant\u201d position in the line of commerce or market from which they seek to exclude each targeted company.<\/li><li>The boycotting companies act in concert to withhold the necessary resource from each targeted company, which in consequence cannot become or remain viable competitor.<\/li><li>The boycotting companies lack a necessary business justification for withholding the necessary resource from each targeted company.<\/li><li>The boycott is \u201chorizontal\u201d \u2014 i.e., is undertaken in accordance with an express or tacit understanding reached by two or more direct competitors.<\/li><\/ol><p><strong>Legal Authority<\/strong>:\u00a0<span style=\"text-decoration: underline;\">See<\/span> <em>Hahn v. Oregon Physicians\u2019 Service<\/em>, 860 F.2d 1501, 1509 (9th Cir. 1988) (setting forth the first three of the above four criteria); and <em>NYNEX Corp. v. Discon, Inc<\/em>., 525 U.S. 128, 135, 119 S.Ct. 493, 498 (1998) (indicating that the <em>per se<\/em> rule against group boycotts applies only when it entails a horizontal arrangement made by direct competitors). <span style=\"text-decoration: underline;\">See also<\/span> <em>Klor\u2019s, Inc. v. Broadway-Hale Stores, Inc.<\/em>, 359 U.S. 207, 212-14, 79 S.Ct. 705, 709-10 (1959) (the Supreme Court stated the <em>per se<\/em> principle); and <em>Northwest Wholesale Stationers, Inc. v. Pacific Stationery and Printing Co.<\/em>, 472 U.S. 284, 294, 105 S.Ct. 2613, 2619-20 (1985) (a group boycott is unlawful <em>per se<\/em> when it has \u201cinvolved joint efforts by a firm or firms to disadvantage competitors by either directly denying or persuading or coercing suppliers or customers to deny relationships the competitors need in the competitive struggle.\u201d) (<span style=\"text-decoration: underline;\">quoting<\/span> L. Sullivan, Law of Antitrust at 261-62 (1977)).<\/p><div class=\"clr\">\u00a0<\/div><div class=\"divider\">\u00a0<\/div><\/div><\/div><\/div>","_et_gb_content_width":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-25121","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-antitrust-litigation-and-counseling"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.8 (Yoast SEO v24.8.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Group Boycotts, Explained (By William Markham, San Diego Attorney, \u00a9 2016) - LAW OFFICES OF WILLIAM MARKHAM, P.C.<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Group Boycotts, Explained (By William Markham, San Diego Attorney, \u00a9 2016)\" \/>\n<meta property=\"og:description\" content=\"Here is a succinct statement of the modern doctrine on group boycotts, which is a term of art in antitrust jurisprudence. 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